Toys "R" Us (Wayne, N.J.) is preparing to liquidate all of its assets while it looks for a buyer or reaches a debt restructuring deal with lenders, reports the Los Angeles Times, which cited unnamed sources close to the matter.
The shuttering of its U.S. division is becoming more likely the longer neither goal is reached. The brand’s American division entered bankruptcy in September with plans to lean out the business and restructure debt, and its been operating on a $3.1 billion loan since.
At the start of the year, Toys "R" Us had 800 stores in operation, including Babies "R" Us locations, and it has since announced the closure of 180 of those sites. The chain makes up 15 percent of U.S. toy revenue. The news of liquidation sent Mattel and Hasbro’s shares falling 6.1 percent and 3 percent, respectively.